Essity Reports Strong Profitability and Market Share Gains in Q4 and Full-Year 2025; Proposes Higher Dividend and Announces Strategic Acquisition

Stockholm, January 22, 2026 – Essity Aktiebolag (publ), a global hygiene and health company, today reported its results for the fourth quarter and full year 2025, delivering high profitability, increased market shares, and strong cash flow, despite a challenging macroeconomic environment. The Board of Directors has proposed a 6% increase in the dividend, reflecting confidence in the company’s financial position and future growth strategy .

Financial Highlights – Q4 2025

• Net sales amounted to SEK 34.7bn, down 8.2% year-on-year, mainly due to currency translation effects

• Organic sales growth was -1.1%, with stable volumes and price/mix pressure

• EBITA excl. items affecting comparability (IAC) increased to SEK 5.1bn, with a margin of 14.7%

• Profit for the period rose to SEK 3.2bn

• Earnings per share increased to SEK 4.69

• Operating cash flow improved to SEK 4.4bn

Full-Year 2025 Performance

• Net sales totaled SEK 138.5bn

• Organic sales growth was 0.9%, driven by selective price increases and stable volumes

• EBITA excl. IAC amounted to SEK 19.6bn, corresponding to a margin of 14.1%, the company’s highest margin in five years

• Profit for the period reached SEK 12.7bn

• Return on capital employed (ROCE) increased to 17.2%

• Net debt/EBITDA excl. IAC improved to 1.03, reflecting a strong balance sheet

Market Share Gains and Segment Performance

Essity increased market shares in more than 65% of its branded retail sales, supported by strong product launches and intensified marketing. Growth was particularly strong in strategic categories such as Incontinence Products, Medical Solutions, Feminine Care, and Professional Hygiene premium products. All three business areas reported improved margins during the year .

Acquisition and Portfolio Expansion

In November 2025, Essity entered into an agreement to acquire Edgewell Personal Care’s feminine care business in North America, including the Carefree, Stayfree, and o.b. brands. The transaction is expected to close in the first quarter of 2026 and strengthens Essity’s position in high-margin personal care categories in an attractive geography .

Cost Savings Program and Organizational Changes

Essity launched a cost savings program in Q4 2025 targeting sales and administrative expenses (excluding marketing). The program is expected to generate annual savings of approximately SEK 1bn, with full effect by the end of 2026. Savings will be reinvested to support profitable volume growth.
A new decentralized organizational structure became effective on January 1, 2026, aimed at accelerating decision-making and strengthening customer focus .

Capital Allocation: Dividend and Share Buybacks

• The Board proposes a dividend of SEK 8.75 per share, up 6% year-on-year

• A SEK 3bn share buyback program is ongoing and will continue until the 2026 Annual General Meeting

• Strong cash flow supports continued investments, shareholder returns, and strategic flexibility

Outlook

Essity enters 2026 with a solid financial foundation, a strengthened portfolio, and clear actions to accelerate growth. The company remains focused on profitable expansion, operational efficiency, sustainability leadership, and shareholder value creation, while navigating ongoing market and currency volatility .